Ahead of the twin polls, the Odisha Government has decided to launch a new scheme—Swatantra Yuva Udyami (SWAYAM) scheme to provide Rs one lakh interest-free bank loan in a bid to facilitate self-employment among the youth of the coastal State.
The state government will be providing interest free bank loans up to Rs 1 lakh to the unemployed youths in the age group of 18-35 years. The objective of the new scheme is to assist the youths in beginning new business or expanding the existing ones.
The state Cabinet chaired by Chief Minister Naveen Patnaik approved a proposal in this regard, said Chief Secretary PK Jena on Monday.
Under the scheme, the Government will spend Rs 448 Crore out of its own budget. The scheme will be operational for a period of 2 years, Jena added.
The annual guarantee fee of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will be borne by the State Government
There will be no collateral and processing fee for this loan. The repayment period will be four years which includes a moratorium period varying from three to six months as prescribed by the concerned bank/financial institution.
The applicant will register and submit the application to the Bank through a dedicated website. The services of Mo-Seva Kendra can also be utilized by the applicant for submission of the application on the website.
The choice of the bank selected by the beneficiary during application filing will conduct document and field verification on the receipt of application.
During field verification the bank will assist the applicant in preparing required simplified DPR for sanctioning loan.
The banks will disburse the loan amount to the applicant after sanction and deposit of margin money.
There will be a committee at State/District/Block level to monitor the Scheme for its smooth implementation, the top officer concluded.